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  5. Up to 9.1 %: These banks now offer higher fixed deposit rates than SCSS for senior citizens

Personal Finance News

Up to 9.1 %: These banks now offer higher fixed deposit rates than SCSS for senior citizens

Upstox
By Upstox News Desk

3 min read | Updated on August 23, 2025, 09:08 IST

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SUMMARY

Many small finance banks are offering higher interest rates on Fixed Deposits for senior citizens compared to the Senior SCSS. Is it worth investing? What should elderly do? This article will give you a clear picture.

banks offering higher FD rates than SCSS for senior citizens

(Picture for representational purpose only). Bank FDs are generally safe as they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). | Image: Shutterstock

Many small finance banks are currently offering higher interest rates on Fixed Deposits (FDs) for senior citizens compared to the Senior Citizens Savings Scheme (SCSS), which offers a fixed return of 8.2% per annum.

Unity Small Finance Bank FD rates for senior citizens

Unity Small Finance Bank is currently offering one of the most attractive fixed deposit (FD) interest rates in the market for senior citizens. For deposits of less than Rs 3 crore, the bank is providing a 9.10% annual interest rate on FDs held for 1001 days for senior citizens for deposits below Rs 3 crore.

Suryoday Small Finance Bank FD rates for senior citizens

Suryoday Small Finance Bank offers the highest FD interest rate of 8.80% on tenure ranging above 30 months to 3 years for senior citizens for deposits below Rs 3 crore.

Utkarsh Small Finance Bank FD rates for senior citizens

Utkarsh Small Finance Bank offers the highest interest rate of 8.75% on term deposits with tenures between 2 years and 3 years for deposits below Rs 3 crore.

Slice Small Finance Bank FD rates for senior citizens

Slice Small Finance Bank provides a highest FD interest rate of 8.5% on fixed deposits. This interest rate is applicable on FD tenure of 18 months 1 day to 18 months 2 day for senior citizens for deposits below Rs 3 crore. Slice is the new name of the former North East Small Finance Bank (NESFB) after their merger, which was officially recognised by the Reserve Bank of India (RBI) in May 2025.

Equitas Small Finance Bank latest FD rates

Equitas Small Finance Bank offers the highest FD interest rate of 8.40% on 888 days tenure.

Bank / SchemeInterest Rate (Annual)TenureDeposit LimitRemarks
Unity Small Finance Bank9.10%1001 days< ₹3 croreHighest rate among listed banks
Suryoday Small Finance Bank8.80%>30 months to 3 years< ₹3 croreCompetitive rate for medium-term FDs
Utkarsh Small Finance Bank8.75%2 to 3 years< ₹3 croreGood option for 2–3 year tenure
Slice Small Finance Bank8.50%18 months 1 day to 18 months 2 day< ₹3 croreShort-term high-yield FD
Equitas Small Finance Bank8.40%888 days< ₹3 croreUnique tenure with attractive rate
SCSS (Govt. Scheme)8.20%5 years₹15 lakh (individual)Government-backed, safer, quarterly payouts
5-year bank fixed deposit rates offered by top lenders for senior citizens

  • SBI: 6.8%

  • HDFC Bank: 6.9%

  • ICICI Bank: 7.1%

  • PNB: 7%

SCSS vs bank FD: Which is safe for the elderly?

Bank FDs are generally safe as they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor per bank. However, small finance banks are inherently a bit riskier than traditional scheduled commercial banks.

While SCSS is backed by the government and offers regular quarterly payouts with a 5-year lock-in.

However, FDs carry slightly higher risk than SCSS and do not offer the same government guarantee. It's wise to compare both options before making your investment decision.
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About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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